How Long Does Chapter 7 Stay With You?

When you become overwhelmed by debts and financial troubles, it can feel like keeping your head above water is impossible. You may feel burnt out, confused, and embarrassed, wondering how it got this bad and how you can do things differently in the future. If you are left feeling like Chapter 7 bankruptcy is your only way out, a New Mexico Chapter 7 bankruptcy lawyer can help you answer, “How long does Chapter 7 stay with you?”

At Gilchrist Law Firm, P.C., you can find compassionate and knowledgeable lawyers who are able to help you through your Chapter 7 filing process, as well as aid you in developing future plans to avoid getting to a place of financial frustration again. It can happen to anyone, but there are tools you can use to help prevent it from happening to you again, starting with hiring a Chapter 7 bankruptcy lawyer.

What Is Chapter 7 Bankruptcy?

Financial troubles often leave you with more questions than answers, but a Chapter 7 bankruptcy lawyer can help you learn how long your Chapter 7 stays with you and how to avoid bankruptcy in the future. Before you can learn all of these things, you first need to know what a Chapter 7 bankruptcy is.

Chapter 7 is the simplest and most common form of bankruptcy an individual can file for. It is often referred to as “liquidation bankruptcy.” When you file for Chapter 7 bankruptcy, you are agreeing to liquidate all of your unprotected assets and sell them in order to pay back all unsecured debts. Examples of unsecured debt are medical bills, credit cards, and personal loans.

How Long Does Chapter 7 Stay With You?

A Chapter 7 bankruptcy case usually takes six months from filing to final discharge. After that, it generally takes up to a decade after you originally filed for bankruptcy for your Chapter 7 record to be removed from your credit report.

By the time Chapter 7 is taken off your credit report, you will have had some time to rebuild your credit score and develop healthy financial habits. Paying your taxes, mortgage, auto loans, child or spousal support, and any other consistent bills in full and on time can make a huge difference in your overall credit score over time. While it can feel like it is, bankruptcy is not the end of the world.

In 2022, 387,721 bankruptcies were filed in the United States. In 2023, 261,277 out of the 445,233 bankruptcies were Chapter 7. You are not alone in your financial struggles, and your Chapter 7 bankruptcy lawyer can help you get back on track and build a strong financial future.

Why Do I Need a Chapter 7 Bankruptcy Lawyer?

Facing the legal implications of Chapter 7 bankruptcy on top of your financial troubles can be incredibly overwhelming, and it can be easy to misunderstand or make mistakes in the face of constant fatigue and confusion. Hiring an Albuquerque, New Mexico Chapter 7 bankruptcy lawyer can help alleviate some of that stress in many ways.

When you have a Chapter 7 bankruptcy lawyer on your side, they can bring clarity to tricky steps and jargon. They can take the lead when you feel burnt out and explain the process to you step by step, ensuring that you understand what is happening so you will not be surprised by expectations and requirements. They can also help you set up healthy new habits and strategize how you will rebuild your credit score post-bankruptcy.

FAQs

Q: How Do I Know When Chapter 7 Is Over in New Mexico?

A: When you have completed all of the necessary steps to file for Chapter 7 bankruptcy, the New Mexico Court System will notify you of the completion. This process can take roughly 6 months to be completed, but you should receive confirmation of your discharge roughly 90 days after completing the Chapter 7 filing process.

Q: What Is the 180-Day Rule in Chapter 7?

A: The 180-day rule applies to people who have inherited property or assets within 180 days of filing for Chapter 7 bankruptcy. If you have learned of an inheritance within 180 days of filing for bankruptcy, you may be required to liquidate your inheritance if it is not exempt. This means that all inherited land, cars, buildings, and more may need to be factored into your Chapter 7 bankruptcy filing process.

Q: Can You Get a 700 Credit Score After Chapter 7 in New Mexico?

A: It is possible to rebuild your credit after declaring Chapter 7 bankruptcy. You can most likely expect a credit drop at first, but this is not the end of the world. It will take time and a strong commitment to doing all of the necessary actions required to rebuild your credit, but it can be done by paying bills on time, avoiding more debts, and not applying for credit for at least a few months.

Q: How Long After Chapter 7 Can I Buy a Car in New Mexico?

A: Unlike Chapter 13 bankruptcy, you do not have to wait a long time after completing your Chapter 7 process to purchase a car in the state of New Mexico. Upon receiving a notice from the court, you will be able to buy a car. You should receive confirmation of your discharge after your 341 meeting of creditors, approximately 90 days after completing the Chapter 7 filing process. Once you have this, you are free to purchase a vehicle.

Get Help Today

Bankruptcy can feel both terrifying and overwhelming. It can feel like starting over without a safety net to catch you if you fall again. Fortunately, you do not need to face the changes and challenges that come with Chapter 7 bankruptcy alone.

At Gilchrist Law Firm, P.C., there are lawyers who are ready to help you handle your financial challenges head-on. They are able to guide you every step of the way, explaining complicated jargon and assisting you with all of the necessary paperwork. Contact us today to schedule a consultation.